Piper upgrades Chipotle to Overweight after 31% selloff

Piper Sandler upgraded Chipotle (CMG) to Overweight from Neutral with a price target of $50, down from $53. The firm cites an improved risk/reward for the upgrade as it now sees over 20% in a “base case” that assumes Chipotle posting comp growth of 3% over the next two years. With the shares down 31% year-to-date, the market is already pricing in the company not being a consistent mid-single-digit same-store-sales business, the analyst tells investors in a research note.